Systematic Investing Group

[leapyear92]

Hey LC!

Yep. The problem with altering buypoints is that we start to lose the mechanical nature. Also, it is harder for annuity style investing than for lump sum.

One of the reasons that Synchro works so well is that it has a constant influx of money to keep that average cost down. What one could do is allocate the $100 per period but only invest it when there is an oversold condition. Problem is what is oversold tends to stay that way; likewise for overbought. So how to split the allocation?

One thing I learned from my trading days is that there is no holy grail...as much as we techies want to believe that there is. The pschology of following a well thought out plan is much more important. That is one reason I am not in favor of optimizing for a given instrument.

Thanks to you we all know that 100% was a miscalculation and the optimal point is in the 50% zone. In the case of jibes XYZ tradeable, the difference between 50 and 30 was negligible.

I have spent a great deal of effort trying to merge TA with AIM. In the early days Myst posted some of my ideas, such as monitoring the equity curve to switch AIM on and off.

Bottom line: It is a lot easier on the pyschy to send in $100 and live with a drawdown that to watch 50-66% evaporate.

If you study several AIM portfolio's over time you will find out that they perform poorly. There is a script on wealth-lab that proves this.

I am wondering if it is possible to hedge using this method. That will be my next task when time permits.

Regards,

Leap